Growing membership and profitability within your Fitness Facility.

1. LES MILLS INTERNATIONAL © 2011
BUILDING SUSTAINABLE AND
SUCCESSFUL HEALTH AND
FITNESS FACILITIES
GROWING MEMBERSHIP AND
PROFITABILITY
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0
10
20
30
40
50
60
1960 1970 1980 1990 2000 2010 2020 2030 2040
Health & Fitness facility attendance has
become the biggest adult „sport‟ in the
Western world.
Bigger than football, tennis and golf
combined …
We thought all stars we aligned for further
growth…
THE FITNESS INDUSTRY HAS
EXPERIENCED MASSIVE
GROWTH IN THE LAST 40
YEARS…
US Adult Fitness Club Participation

3. LES MILLS INTERNATIONAL © 2011
FUTURE OF FITNESS
THE WHITE PAPER
OUTLINES INDUSTRY
„CHALLENGES‟ THAT POSE
AN ALARMING THREAT TO
FUTURE SUSTAINABILITY,
GROWTH AND SUCCESS…
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4. LES MILLS INTERNATIONAL © 2011
OUR INDUSTRY IS AT RISK…
• Membership retention is the largest problem facing our industry today
• Based on commodities and lacking the excitement and social
engagement of sports - We behaved more as gyms than as true health
clubs.
• Competitive industries are evolving faster than us, eg:
• Virtual exercise
• New sports
• Nutritional science
• Medicine
• Stagnating industry - Segmentation rather than innovations – The
industry has started to turn into itself – we are fighting for the same
customers instead of innovating to attract new ones (Budget clubs;
micro Gyms)

5. Budget Clubs

6. LES MILLS INTERNATIONAL © 2011
MICRO GYMS
 Many facilities worldwide are being hurt
by low-budget competitors.
 At the same time, there are successful
new fitness models emerging (micro
gyms) eg:
• Cross Fit Studios
• Orange Theory - $23 per class
• Kosama, Omni, Fitness Together, Title Boxing
• Soul Cycle and Flywheel (US) – $32 per class
• Pure Yoga (Asia and US) –
$145 to $165 per month
• Exhale Spa (US) – $195 pm for classes-only
membership
• People are willing to pay for value…
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7. LES MILLS INTERNATIONAL © 2011
WHITE PAPER:
WHAT DO PEOPLE
WANT? WHY DO THEY
JOIN A GYM?
THREE AREAS OF
OPPORTUNITY
1. Exertainment
2. Community/Building bonds
3. Health
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WE BELIEVE WE CAN COMBINE

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MOTIVA
TION

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HOW CAN WE
TELL WE ARE
DOING A GREAT
JOB OF
MOTIVATING
PEOPLE?
IT’S SIMPLE. THEY ATTEND MORE
OFTEN.
Many operators focus solely on sales and profit. Sophisticated clubs and recreation
centers add membership numbers and retention statistics. These are valid but BUT
can not guide management decisions –We need to manage using leading
measures which predict what the outcomes will be.
There is one number that has a more powerful effect on success than any of the
others, that influences everything else: Member attendance.
ATTENDANCE IS THE MOST
IMPORTANT METRIC IN OUR
INDUSTRY.
BUT ONE OF THE LEAST MEASURED
BY CLUB OWNERS.
Regular attendees renew their memberships, refer their friends and promote their
clubs at staggering rates when compared to members who pay but seldom use their
gyms.

10. LES MILLS INTERNATIONAL © 2011
SO HOW CAN WE
„MANAGE‟
MOTIVATION TO
ATTEND?
For all the good efforts of the equipment
companies, it’s not about the machines.
It’s about becoming more than just a place
where people come to pump iron and run on a
treadmill.
Leave that to the budget gyms that charge
$10 a month.

11. LES MILLS INTERNATIONAL© 2011
HOW DO
THE
BEST
FACILITI
ES DO
IT?
Design a high-energy workout environment
Create a relationship selling and new
member induction system
Recruit a team of great personal and small
group trainers
Build a ‘club within a club’ system for
sports and other activities
Develop a member education and social
network communication system

12. LES MILLS INTERNATIONAL© 2011
• 90% of all exercisers report that they would prefer to work out in a group.1
• Members who attend Group Exercise (GX) use their facility 3 times per week compared to
IHRSA's figure of 1.9 member visits a week, on average.
• GX is cited as the biggest influence (40%) on how long people remain a member of a
fitness facility.
• GX member retention rates are higher than other member retention rates, on average.
• 60% of people rate GX as the #1 service they specifically look at when choosing a gym.2
• Satisfied GX members refer people 3 times more than other members.
GROUP
EXERCISE
STANDS OUT HEAD AND
SHOULDERS AS A
MOTIVATIONAL WEAPON

13. LES MILLS INTERNATIONAL© 2011
Yes absolutely. These are wonderful innovations
that have revolutionised parts of our industry. And
facility operators love them because they can
charge for them. However even the world‟s best
only engage around 10% of their attendances in
PT and 3-4% in Small Group Training.
Group Exercise attracts and motivates the
masses. Some of the world‟s most successful
facilities have over 50% of their attendances in
Group Exercise.
WHAT ABOUT PERSONAL
TRAINING AND SMALL GROUP
TRAINING… DON‟T THEY ACHIEVE
THE SAME THINGS?
“GROUP EXERCISE MEMBERS
ATTEND MORE REGULARLY,
REMAIN MEMBERS LONGER,
MAKE MORE REFERRALS,
PERCEIVE GREATER VALUE IN
THEIR MEMBERSHIPS (I.E. WILL
PAY MORE) AND DO NOT LEAVE
WHEN A BUDGET GYM OPENS
NEARBY!”1
1. Will Phillips, The Retention Breakthrough

14. LES MILLS INTERNATIONAL © 2011
WHAT DOES IT
TAKES TO BECOME A
CHAMPION AT
GROUP EXERCISE?

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THE PLAN IS BASED AROUND 8
KEYS
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WHERE TO
START?

17. One Tribe– Changing the World Les Mills International © 2010One Tribe– Changing the World Les Mills International © 2010
CREATE A
SCORECARD
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THE TEAM CAN‟T
PLAY TO WIN IF IT
DOESN‟T KNOW THE
SCORE

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IF YOU CAN‟T
MEASURE IT, YOU
CAN‟T MANAGE IT

20. One Tribe– Changing the World Les Mills International © 2010
IMPLEMENT A SCORECARD
GET THE TEAM TO PLAY FOR
WINNING
1. Count the numbers
– Systematic in every class
– Third party or digital
2. Set class attendance targets
– Give your instructor a specific goal and benchmark
– Clarify their contribution towards the BHAG
– Set two types of class targets – long and short term ones
3. Analyze and use the data
– To make ongoing timetable and management decisions
based on facts and not on personal interpretation or
„feelings‟
– Data-tracking system to track performance versus targets
4. Publish the results to instructors
– Ranking your instructors creates friendly rivalry which is
essential to drive attendance growth
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LEADING TO WIN - SETTING
CLASS TARGETS
THE ART OF DEFINING NEW
TARGETS AND THE 10 FACTORS TO
CONSIDER:

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TRACK YOUR NUMBERS
KEY GF KPI‟S TO TRACK
PERFORMANCE VS TARGETS1. Weekly GF attendance
2. % club Visits delivered by GF
3. Average attendance per class
4. Individual class performance:
• Class rankings
• Option: Cost per head
5. Program performance (program rankings)

23. One Tribe– Changing the World Les Mills International © 2010One Tribe– Changing the World Les Mills International © 2010
MAXIMIZE YOUR
TIMETABLE
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THE ULTIMATE
BENCHMARK OF A
TIMETABLE IS THE
NUMBER OF
PEOPLE IT PULLS

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GIVE MEMBERS MORE OF WHAT
THEY WANT
3 TOP DRIVERS: PROGRAM,
INSTRUCTOR ABILITY AND CLASS
TIME

26. One Tribe– Changing the World Les Mills International © 2010
GET YOUR
PROGRAMMING RIGHT• Prospects and members usually need
three types of training to cover their
basic needs
• Make sure you have at least one great
program you can recommend
BLINDLY in terms of quality,
experience and consistency in each of
these categories:
– Strength toning
– Cardio
– Mind-body stretch
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27. One Tribe– Changing the World Les Mills International © 2010
GETTING YOUR
PROGRAMMING RIGHT
WHERE TO START?
5 program genres comprise 75% of GX attendance
every week
In order of market share, these are:
• 21% Strength and
Weights
• 19% Cycling
• 14% Mind and Body
• 12% Dance
• 9% Martial Arts
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28. One Tribe– Changing the World Les Mills International © 2010
GET YOUR
PROGRAMMING RIGHT
ALLOCATE 70% OF YOUR
TIMETABLE TO CORE PROGRAMS
MATCHING YOUR NATURAL
TARGET MARKET AND 20 - 30% TO
SPECIALTY ONES TO TARGET
NICHE OR NEW TARGET MARKETS
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1. Think horizontally
1. Offer at least one strength/toning option, one Cardio workout
and one mind body/stretching option through the week in each 2-
hour timeslot .
2. Make sure you offer your core programs at least two to three
times a week across each 2-hour timeslot.
2. Use specialty programs in shoulder or off peak slots
3. Consider express classes to suit people busy life style and
new high intensity and express workout trends
One Tribe – Changing the World Les Mills International © 2010
DESIGNING TIMETABLE
EXTRA TIPS TO GROW YOUR
ATTENDANCE

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A SINGLE GREAT
INSTRUCTOR CAN
BRING HUNDREDS OF
MEMBERS AND $$ TO

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A TEAM OF GREAT
INSTRUCTORS CAN
BRING THOUSANDS
OF MEMBERS AND

33. One Tribe – Changing the World Les Mills International © 2010
CASTING IS
EVERYTHING
NEVER TRY TO
TEACH A PIG HOW
TO SING. IT WASTES
YOUR TIME AND
ANNOYS THE PIG.
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34. – Changing the World Les Mills International © 2010One TribeOne Tribe – Changing the World Les Mills International © 2010
BASED ON 2008 AND 2010
CVM GLOBAL RESEARCH:
RECRUITING
INSTRUCTORS IS THE TOP
CHALLENGE CLUBS FACE
IN GROWING GROUP
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35. REVERSE THE TREND!
LOOK NOW FOR THE TALENTS
OF TOMORROW
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36. One Tribe – Changing the World Les Mills International © 2010
LOOKFORBALANCEDINTERNAL
ANDEXTERNALMOTIVATIONS
CREDIBLEPHYSICALROLEMODELANDPASSIONATEDABOUTSPORT
NATURALLYABLETOINTERACTANDCONNECTWITHALARGEVARIETYOFPEOPLE
NATURALLYABLETOCATCHANDHOLDPEOPLE’SATTENTION
PASSIONATEABOUTINSPIRINGYOURMEMBERSANDKEEPINGTHEMCOMINGBACK!
ADESIRETOPOSITIVELYINFLUENCEPEOPLE’SLIVESANDTHECOMMUNITY
ACOMMITMENTTOONGOINGTRAININGANDUPSKILLING
ABLETOREPRESENTYOURCLUBCULTUREANDWILLINGTOGROWYOURCLUBSUCCESS
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RECRUIT
4
29Les Mills Inter national Limited © Issued 13.07.2011

37. One Tribe – Changing the World Les Mills International © 2010One Tribe – Changing the World Les Mills International © 2010
Source: AC Nielsen Research
RECRUIT IN THE „ESSENCE‟
REMEMBER WHAT KIND OF EXPERIENCE
PEOPLE WANT FROM THEM

38. One Tribe – Changing the World Les Mills International © 2010
SOURCING NEW TALENT
SPREAD YOUR NET WIDER. RECRUIT
NEW TALENT BEYOND YOUR
FACILITY.
• Summer camp
counselors
• BODYJAMTM -
Hold a rave
• Stunt academies
• Modeling agencies
• Acting schools
• Gymnastics
associations
• Talent agencies
• Armed Forces
• www.lesmills.com(
employment page)
• Emergency
services
• Athletic clubs
• Sporting goods
stores/cycle
shops
• Music/theater
schools
• Current facility
staff
• Current LM
instructors
• Members taking
LM classes
• Spouses of
• Theater and
dance
companies
• Physical
Education
schools
• Referrals from
teaching team
• College/universi
ties
• Schoolteachers
• Baristas/waiters
and waitresses
• Dance/Karate/Y
oga schools
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RECRUITING WITH LES MILLS AND
PROFESSIONAL TOOLS
RECRUITMENT CAMPAIGN AND VIDEOS

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RECRUITING WITH LES MILLS AND
PROFESSIONAL TOOLS
MANAGER GUIDE, SELECTION PROCESS
AND FORMS, INTERVIEW GUIDE…
JOINTHEWORLD’SMOST
POWERFULTEAMCHANGING
MILLIONSOFLIVES
InstructorRecruitmentCampaignGuidelines

41. One Tribe – Changing the World Les Mills International © 2010
RETAIN YOUR
INSTRUCTORS
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INCREASE THE COMMITMENT
AND LOYALTY OF YOUR
INSTRUCTORS. INCENTIVIZE
TOP PERFORMANCE AND
RETAIN TOP-PERFORMING
INSTRUCTORS. CREATE A

42. One Tribe – Changing the World Les Mills International © 2010One Tribe – Changing the World Les Mills International © 2010
ORGANIZE WORLD-
CLASS
INSTRUCTOR
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IMPLEMENT AN
EXTERNAL AND IN-
HOUSE TRAINING
AND ASSESSMENT
CONSTANTLY DEVELOP
YOUR TEAM TOWARDS
MASTERY

44. One Tribe – Changing the World Les Mills International © 2010
CONSTANTLY DEVELOP YOUR
TEAM TOWARDS MASTERY
BUILD UP THEIR SKILLS IN THE 5
KEY ELEMENTS OF TEACHING
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45. One Tribe – Changing the World Les Mills International © 2010One Tribe – Changing the World Les Mills International © 2010
LES MILLS‟ TRAINING PROCESS
BUILDING ROCK STARS IN A SHORT
TIME
Training actions LES MILLS™
driven
Club driven
Selection of candidates and preparationbefore Initial
Module
✓
Initial Module training – 2 days ✓
Clearance to teach at the end of training – grading
system
✓
Team-training before Launch ✓
Prepare Instructor’s Certification and send videos ( up
to
12 weeks post module)
✓
INSTRUCTOR INTERNATIONAL CERTIFICATION ✓
Ongoing training - Quarterly Workshops ✓
In-house quality control ✓
Team-training before Quarterly Launch ✓
Advanced instructor training – AIM Modules 1 and 2 ✓
ADVANCED AND ELITE CERTIFICATIONS ✓

46. One Tribe– Changing the World Les Mills International © 2010One Tribe– Changing the World Les Mills International © 2010
DEVELOP THE BEST
STUDIO YOU CAN
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CREATE A WOW GF DESTINATION
A GREAT GF
DESTINATION
PULLS MEMBERS

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“Exertainment”
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 78% say room to exercise is extremely/very important!
 60% say the ambience of the room is extremely/very important
MOTIVATING ATTENDANCE

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HERITAGE
SOME ARCHITECT
SOMEWHERE DECIDED THAT
GF STUDIOS SHOULD HAVE
WHITE WALLS, STRIP LIGHTS
AND HAVE MIRRORS ALL
AROUND.
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CREATE A WORLD-CLASS DESTINATION
5 TOP EXPERIENTIAL DESIGN PRIORITIES TO ENHANCE
PARTICIPANTS‟ EXPERIENCE
1. Sound and microphone: The best you can afford –
think concert; if unbalanced, it makes a difference to
attendee experience
2. Stage: Design and position – big enough to fit 2 or 3
instructors. Think theater and minimizing side views if
possible. Use side screens and backdrop – project
mood-enhancing images
3. Lighting: Theatrical stage lighting to enhance
dramatic impact
4. Mirrors: Have none if possible or have them at the
side – never behind the stage, as they distract and
detract from the experience
5. Décor: Colors and branding can be very powerful to
enhance mood – it should feel like a strong, athletic,
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CREATE A GF
MARKETING PLAN
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67. LES MILLS INTERNATIONAL © 2011
YEARLY GX MARKETING PLAN
TO GROW MEMBERSHIP AND
PROFIT
TOP ACTIONS
1. Launching program(s) and Launch events
2. Quarterly Re-launch events
3. Ongoing internal promotion on the benefits of your GX programs
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68. LES MILLS INTERNATIONAL © 2011
LES MILLSTM EVENTS
BENCHMARK
 Massive BUZZ and interest in club during the 2 weeks building up to event
 Full focus from club team on common goals and interaction between sales,
customer experience and product departments – ‘Breaking down silos’
 Attendance: 5 to 10% membership
 Sold-out events and massive energy in clubs – all classes at 80 to 100% capacity
 20% guests per class
 50 to 70% conversion rate of guests
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69. LES MILLS INTERNATIONAL © 2011
Experience
Sales
“When you host GX events, you are selling non-members an
experience, not a membership – this makes selling so much easier.”
THE SALES / EXPERIENCE
CURVE
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WORLD-CLASS
MARKETING
AND
PROMOTIONAL
SOLUTIONS
EVERYTHING YOU NEED TO
HOST AMAZING EVENTS
THAT ATTRACT NEW MEMBERS
AND PROMOTE YOUR
PROGRAMS.
The LES MILLS™ Group Fitness
solution gives you free access to a
huge collection of valuable
marketing and promotional
resources. We are continually
working on new ways to help you
inspire your members and
prospects. Currently we‟re
developing online tools, which will
allow you to customize material with
your own club logos and messages.

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PLAN FOR
SUCCESS
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PLAN FOR SUCCESS
GF BUDGET EXAMPLE

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PLAN FOR SUCCESS
MONTHLY HEADLINE REPORT FOR
MANAGEMENT AND INSTRUCTORS
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EXAMPLE HEADLINE MONTHLY GROUP FITNESS
REPORT
Reporting month July-08
Name of facility Club Fabuloso
Overall goal: To grow GF attendances by 25% in 12 months
Actual attendance trends Last MONTH
Current
month
Increase/
decrease
Comment
Actual attendances 4850 4900 50 Small increase month-to-month despite school holidays
Monthly Budget Actual Variance Comment
Total monthly costs
4,500 4,300 200 Savings mainly due to gifts being supplied for free for
monthly promotion due to local company sponsorship
Attendances
5,000 4,900 (100)
School holidays impacted attendances more than expected
GF visit/Total visits Actual GF visits Total Visits Percentage Comment
For July
4,900 12,000 41% Substantial proportion of members attend GF

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APPOINT OR BE A
WORLD
CLASS GF
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YOU NEED A GREAT TEAM
TO HELP YOU ACHIEVE YOUR
VISION AND GOALS

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AND MORE THAN ANYTHING …
YOU NEED TO RECRUIT/BE A
GREAT TEAM CAPTAIN AND
LEADER!
Engaging members more is KEY to increasing club’s usage,
membership and profit

85. – Changing the World Les Mills International © 2010One Tribe
YOU ARE AS
IMPORTANT
TO YOUR FACILITY
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GX MANAGERS - YOU ARE A
MAJOR HIRE

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 You are a key business driver
 You lead a team which is responsible
for bringing and retaining thousands
of members to your facility
 You drive up to 50% of your club
attendance…
AS A GREAT GROUP FITNESS MANAGER
YOU CAN CHANGE THE FUTURE OF
YOUR CLUB

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HIRE OR BE A WORLD-CLASS GX
MANAGER
CAN YOU…
• Hitting your weekly attendance goals and staying within
budget
• Rigorously implementing the Key Elements of GFM
• Communicating with management to increase support
for Group Fitness over time
• Leading your team to deliver extraordinary fitness
experiences to your members
• Being a coach, not an ego
• Building a powerful and purpose-driven team
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STAND FOR SOMETHING.
CREATE A CAUSE, NOT A
BUSINESS.
GIVE YOUR TEAM SOMETHING
BIGGER THAN THEMSELVES TO
FIGHT FOR.

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FOR A FITTER PLANET
 “We are warriors in the battle against
inactivity and over-consumption.”
LMI Instructor Creed, 1998
 “Creating life-changing experiences every
time, everywhere. One class at a time,
one participant at a time.”
AIM manual
 “Making people fall in love with fitness.”
Les Mills, 1968
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